The court affirmed the applicability of the IBC to establish corporate insolvency following compliance with legal debt requirements.

IN THE NATIONAL COMPANY LAW TRIBUNAL

SPECIAL BENCH AT INDORE

ITEM No.2

Order under Section 7 IBC

IN THE MATTER OF:

Bhojraj Verma & Ors ........Applicant

V/s

Garima Real Estate & Allied Ltd ........Respondent

Coram:

Mohan P. Tiwari, Hon’ble Member(J) Sanjeev Sharma, Hon’ble Member(T)

ORDER

09/10/2025

The case is fixed for pronouncement of the order. The order is pronounced in open

Court vide separate sheet.

Sd/- Sd/-

SANJEEV SHARMA MOHAN P. TIWARI

MEMBER (TECHNICAL) MEMBER (JUDICIAL)

Neeraj

IN THE NATIONAL COMPANY LAW TRIBUNAL (Filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 r/w Rule 4 of Insolvency and Bankruptcy Application to Adjudicating Authority Rules

2016)

Bhojraj Verma & Ors S/o Sh. Udal Ram Verma

413, Near Sai Mandir, Tulsi Post –Newra, Dist. Raipur (C.G) ……..Applicants/Financial Creditors VS Garima Real Estate & Allied Limited CIN: U70100MP2007PLC019955 Having Registered Office at:

403-SOURAW PLAZA GOLE KA MANDIR GWALIOR- MP 474005 E-mail:cafirmgwalior@gmail.com …..…Respondent/Corporate Debtor Order pronounced on:09.10.2025 CORAM:

SH. MOHAN P. TIWARI, HON’BLE MEMBER (J) SH. SANJEEV SHARMA, HON’BLE MEMBER (T)

Appearance:

For the Applicant : Mr. Sunil Bhavsar (Advocate)

For the Respondent : Ex Parte (09.07.2021)

ORDER

1. This Application has been filed on 06.11.2019 under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) by Bhojraj Verma & others (hereinafter referred to as “Financial Creditors”) seeking initiation of the Corporate Insolvency Resolution Process (“CIRP”) against Garima Real Estate & Allied Limited (hereinafter referred to as “Corporate Debtor”), along with declaration of moratorium and appointment of an Interim Resolution Professional (“IRP”).

2. The application was filed jointly through Mr. Bhojraj Verma by furnishing powers of attorney and letters of authorization in compliance with Rule 4(4) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The said powers of attorney were duly notarized in accordance with law.

3. The Corporate Debtor was incorporated on 29.10.2007 under CIN: U70100MP2007PLC019955 as a Public Company, registered with the Registrar of Companies, Gwalior. Its registered office is situated at 403, Souraw Plaza, Gole Ka Mandir, Gwalior, Madhya Pradesh – 474005. The Corporate Debtor is engaged in real estate activities. Initially, six Financial Creditors filed the present application under Section 7 of the IBC, 2016 claiming a financial debt of Rs. 4,51,000/-, with the total payable amount including interest aggregating to Rs. 9,52,000/-. The maturity date for repayment was 30.04.2017. Since the Corporate Debtor defaulted in repayment, the petition was filed within the limitation period.

4. The Financial Creditors had executed Application Forms and Application- cum-Agreements with the Corporate Debtor under an allegedly illegal investment scheme. Upon submission of the forms, the investors were issued Certificates containing registration details, plan numbers, amounts invested, mode of payment, and promised returns. The Corporate Debtor assured fixed returns on maturity.

5. Subsequently, the Securities and Exchange Board of India (SEBI) initiated proceedings on a complaint of illegal fund mobilization. By order dated 03.05.2016, Shri Prashant Saran, Whole-Time Member, SEBI, prohibited the Corporate Debtor and its directors from raising further funds under Collective Investment Schemes (CIS) and directed them to wind up such schemes, refund investors within three months, and file compliance reports.

6. The Corporate Debtor, however, failed to refund the dues of Rs. 9,52,000/-, inclusive of interest, even after maturity. The claim is within limitation as default continues from 2017 onwards. With effect from 28.12.2019, Section 7 of the IBC was amended requiring a joint application by not less than 100 creditors in case of certain classes of financial creditors. In compliance, an amended affidavit dated 27.01.2020 was filed, confirming that

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